/* Article Data (Server Side) article (o): [object Object] Content (s): Article Not Found. relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): Treasury Department Rejects Plan to Cut Pension Benefits for Teamsters Teaser (s): Teamsters union retirees took part in a rally on the West Front of the United States Capitol on April 14, voicing their opposition to a proposal that would impose deep cuts on their pension benefits. Source (s): New York Times DocumentDate (s): 26 minutes ago DocumentDate_raw (n): 1462579200000 Link (s): http://www.nytimes.com/2016/05/07/business/dealbook/treasury-department-rejects-plan-to-cut-pension-benefits-for-teamsters.html DocumentKey (s): HTTPwww.nytimes.com/2016/05/07/business/dealbook/treasury-department-rejects-plan-to-cut-pension-benefits-for-teamsters.html DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): Top Tribune Publishing shareholders at odds over sale to Gannett Teaser (s): The second-largest shareholder of Los Angeles Times owner Tribune Publishing has ratcheted up the pressure on the company's board to reconsider a sale to USA Today publisher Gannett Co. Source (s): Los Angeles Times DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1462574475000 Link (s): http://www.latimes.com/business/la-fi-oaktree-tribune-gannett-20160506-snap-story.html DocumentKey (s): HTTPwww.latimes.com/business/la-fi-oaktree-tribune-gannett-20160506-snap-story.html DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] Headline (s): Source of Panama Leak Offers Authorities Help in Prosecutions Teaser (s): The anonymous whistle-blower who leaked millions of Panamanian legal documents related to secret shell companies offered to help authorities investigate and prosecute criminal cases that might arise from them in exchange for immunity. Source (s): Bloomberg DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1462574368000 Link (s): http://www.bloomberg.com/news/articles/2016-05-06/source-of-panama-leak-offers-authorities-help-in-prosecutions DocumentKey (s): HTTPwww.bloomberg.com/news/articles/2016-05-06/source-of-panama-leak-offers-authorities-help-in-prosecutions DMSourceID (s): Google ContentType (s): Article 3 (o): [object Object] Headline (s): FCC Backs Charter's Acquisition of Cable Companies Teaser (s): WASHINGTON - The Federal Communications Commission confirmed on Friday that it had approved Charter Communications' acquisitions of Time Warner Cable and Bright House Networks. Source (s): New York Times DocumentDate (s): 3 hours ago DocumentDate_raw (n): 1462569750000 Link (s): http://www.nytimes.com/2016/05/07/technology/fcc-backs-charters-acquisition-of-cable-companies.html DocumentKey (s): HTTPwww.nytimes.com/2016/05/07/technology/fcc-backs-charters-acquisition-of-cable-companies.html DMSourceID (s): Google ContentType (s): Article 4 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Wages Are Growing, But Are They Growing Fast Enough? Link (s): http://folionation.squarespace.com/news/2016/5/6/wages-are-growing-but-are-they-growing-fast-enough-1.html Thumbnail (s): DocumentDate_raw (n): 1462568580000 DocumentDate (s): May 6, 2016 DocumentDate_smart (s): 5:03 PM DocumentKey (s): 1107-290734296785735679566-2V7SLUVORF4AT5L8509J5D1C8M ContentType (s): Article TrackingPixel (s): Teaser (s):
The April jobs report was weak, though higher wages was a bright spot. Still, all is not well on the wages front.
Everybody's working for the weekend, but most Americans are doing it for lackluster wages. According to an NPR report, citing the Economic Policy Institute, four out of five Americans saw stagnant or declining wages between 2007 and 2014, though, on average, wages for the American worker haven't grown significantly since the early '70s. And for the past six years, annual wage growth has hovered around 2%.
That's why the 2.5% year-over-year growth in hourly earnings in Friday's April jobs report was considered a bright spot amid mixed results, including the lower-than-expected addition of 160,000 new jobs. Though wages grew by 2.5% in January, growth slowed to just 2.2% in February and 2.3% in March.
Considering the cost of living, the 2.5% increase in wages isn't likely to comfort many American workers. In 2015, the Kaiser Family Foundation discovered that employee deductibles had risen by 67% since 2010, meaning employees are increasingly paying out of pocket for their medical treatments. Given that 81% of health insurance plans have deductibles, this means that an overwhelming number of workers have less money to spend.
Despite issues with wage growth, the economic recovery has led to a better job market overall: unemployment is at 5% compared to the recession high of 10% in October 2009. Perhaps this helps explain why Americans' perception of their financial situation is evenly split: according to a recent Gallup poll of 1,015 U.S. adults, 50% view it positively, while the other 50% view it negatively.5 (o): [object Object] Headline (s): US stocks gain but log second straight week of losses Teaser (s): U.S. stocks bounced back from earlier weakness to close higher on Friday but logged their second straight week of losses. Main indexes were pressured after data showed that the economy added only 160,000 new jobs in April while the unemployment rate ... Source (s): MarketWatch DocumentDate (s): 4 hours ago DocumentDate_raw (n): 1462565025000 Link (s): http://stream.marketwatch.com/story/markets/SS-4-4/SS-4-106702/ DocumentKey (s): HTTPstream.marketwatch.com/story/markets/SS-4-4/SS-4-106702/ DMSourceID (s): Google ContentType (s): Article 6 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Wages Are Growing, But Are They Growing Fast Enough? Link (s): http://folionation.squarespace.com/news/2016/5/6/wages-are-growing-but-are-they-growing-fast-enough.html Thumbnail (s): DocumentDate_raw (n): 1462562940000 DocumentDate (s): May 6, 2016 DocumentDate_smart (s): 3:29 PM DocumentKey (s): 1107-290734296785735679471-0OC3UMRRR16LCCETBOQ0S1PA12 ContentType (s): Article TrackingPixel (s): Teaser (s):
Read Next: The Trouble With The Typical Millennial Starting Salary7 (o): [object Object] Headline (s): Jamba Juice will move headquarters from Bay Area to Texas Teaser (s): More than 25 years after the first Jamba Juice shop opened in San Luis Obispo, the owner of the smoothie company announced plans to move its headquarters from California to Texas within eight months. Source (s): Los Angeles Times DocumentDate (s): 8 hours ago DocumentDate_raw (n): 1462548503000 Link (s): http://www.latimes.com/business/la-fi-jamba-juice-20160506-snap-story.html DocumentKey (s): HTTPwww.latimes.com/business/la-fi-jamba-juice-20160506-snap-story.html DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] Headline (s): Your Money|Prince Needed a Will, but Maybe You Don't Teaser (s): Tributes and memorials dedicated to Prince on the fence that surrounds Paisley Park. Though he died without one, Prince needed a will. Source (s): New York Times DocumentDate (s): 9 hours ago DocumentDate_raw (n): 1462548269000 Link (s): http://www.nytimes.com/2016/05/07/your-money/the-role-of-a-will-in-asset-distribution.html DocumentKey (s): HTTPwww.nytimes.com/2016/05/07/your-money/the-role-of-a-will-in-asset-distribution.html DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] Headline (s): US employment slows as only 160000 jobs created in April, joblessness rate at ... Teaser (s): The U.S. labor market grew in April at its weakest pace in seven months, new government data showed Friday, as more firms held off on hiring amid anxiety about broader economic weaknesses. Source (s): Washington Post DocumentDate (s): 12 hours ago DocumentDate_raw (n): 1462535728000 Link (s): https://www.washingtonpost.com/news/wonk/wp/2016/05/06/u-s-to-release-jobs-data-for-april/ DocumentKey (s): HTTPSwww.washingtonpost.com/news/wonk/wp/2016/05/06/u-s-to-release-jobs-data-for-april/ DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] Headline (s): Gold jumps after US payrolls data misses forecasts Teaser (s): NEW YORK/LONDON Gold jumped 1 percent on Friday after U.S. non-farm payrolls data for April came in weaker than expected, boosting expectations the Federal Reserve will delay further interest rate increases. Source (s): Reuters DocumentDate (s): 23 hours ago DocumentDate_raw (n): 1462496843000 Link (s): http://in.reuters.com/article/global-precious-idINKCN0XX028 DocumentKey (s): HTTPin.reuters.com/article/global-precious-idINKCN0XX028 DMSourceID (s): Google ContentType (s): Article 11 (o): [object Object] Headline (s): Donald Trump Is Coherent on Monetary Policy, but Not on Debt Teaser (s): Janet Yellen with the former Fed chairs Ben Bernanke, center, and Paul Volcker. Donald Trump said he would most likely replace her as Fed chairwoman if he became president. Source (s): New York Times DocumentDate (s): May 5, 2016 DocumentDate_raw (n): 1462469526000 Link (s): http://www.nytimes.com/2016/05/06/upshot/donald-trump-is-coherent-on-monetary-policy-but-not-on-debt.html DocumentKey (s): HTTPwww.nytimes.com/2016/05/06/upshot/donald-trump-is-coherent-on-monetary-policy-but-not-on-debt.html DMSourceID (s): Google ContentType (s): Article 12 (o): [object Object] WSODIssue (s): |41742|4541440|3346440 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Sell In May and Go Away? Link (s): http://folionation.squarespace.com/news/2016/5/4/sell-in-may-and-go-away.html Thumbnail (s): DocumentDate_raw (n): 1462381200000 DocumentDate (s): May 4, 2016 DocumentDate_smart (s): May 4, 2016 DocumentKey (s): 1107-290734296785735677591-0M1C46PR5VVN098PJJQFKRJCJV ContentType (s): Article TrackingPixel (s): Teaser (s):
Just as schoolchildren learn "April showers bring May flowers," investors know "Sell in May and go away."
"Sell in May and go away" is one of Wall Street's most beloved cliches. The idea behind the saying is that investors should sell their stocks in May to avoid the seasonal underperformance that takes place between May and October. Per Investopedia, citing the Stock Trader's Almanac, the average return of the Dow Jones Industrial Average is 0.3% between May and October, compared to 7.5% between November and April since 1950.
Of course, following cliches may not be the best investing strategy, especially since past performance isn't indicative of future performance. Take last May, for example. At the end of the month, the Dow and S&P 500 were up 1%, while the Nasdaq gained roughly 3%.
The three indices also had a good May back in 2014; the Dow hit a new high, the S&P 500 rose over 2% and the Nasdaq surged 3.1%. And as Brian Lund pointed out over at Daily Finance, the SPDR S&P 500 ETF (SPY) and the Powershares QQQ ETF (QQQ), which track the S&P 500 and Nasdaq, respectively, rose 6% and 14% between May 2 and September 2, 2014.
On the other hand, following investor selling can be a useful metric when considering a stock. Significant selling by institutional investors, such as hedge funds and mutual funds, and company insiders can indicate increased bearishness towards a stock. Both groups of investors are likely to have a better understanding of the company's specific industry—as well as the various conditions that can affect its success—than the average investor. When insiders sell, lack of faith in the company's future may be why, though there are other possible explanations as well.
Screening for stocks with an uptick in selling by institutional investors and insiders is one way to get a sense of how bearish informed investors are towards a stock. With that in mind, here are three stocks with very negative institutional and insider transactions. That means that the net activity for both institutional and insider transactions has been at least 20% negative.
Click on the interactive chart to view data over time.
1. Alliance Healthcare Services Inc. (AIQ): Provides outpatient diagnostic imaging services and radiation therapy services in the United States. Market cap at $74.55M, most recent closing price at $7.02.
Insider transactions at -26.68%.
Institutional transactions at -55.05%,
2. Lake Shore Bancorp Inc. (LSBK): Operates as the holding company for Lake Shore Savings Bank that provides banking products and services in New York. Market cap at $89.29M, most recent closing price at $14.25.
Insider transactions at -23.15%.
Institutional transactions at -26.61%.
3. PharmAthene Inc. (PIP): Engages in the development and commercialization of medical countermeasures against biological and chemical weapons in the United States. Market cap at $156.11M, most recent closing price at $2.40.
Insider transactions at -28.85%.
Institutional transactions at -22.87%,
(Monthly return data provided by MOD. All other data sourced from FINVIZ.)
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Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.13 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): The Dire Straits of Puerto Rico Link (s): http://folionation.squarespace.com/news/2016/4/29/the-dire-straits-of-puerto-rico.html Thumbnail (s): DocumentDate_raw (n): 1461962820000 DocumentDate (s): April 29, 2016 DocumentDate_smart (s): Apr 29, 2016 DocumentKey (s): 1107-290734296785735673852-4GS1NUE80E5KUCDTM7OV928VKV ContentType (s): Article TrackingPixel (s): Teaser (s):
Puerto Rico can't pay its creditors, and Congress is dragging its heels with a relief measure to help the island.
May Day is a holiday celebrated around the world, but this year, the first day of May signals the dawn of a new economic nightmare for Puerto Rico. The small island, which became a U.S. territory in 1898, is supposed to make a $422 million payment to its creditors the following day, May 2. Unfortunately, after nine years of recession, Puerto Rico is broke, and missing Monday's payment means that the island will default on its debt.
How It Happened
The severity of Puerto Rico's fiscal crisis made international headlines in June 2015 when Governor Alejandro Garcia Padilla made an astonishing announcement: the island was unable to pay its $72 billion debt. Padilla expressed his desire to make arrangements to restructure Puerto Rico's debt with its creditors.
But as a commonwealth, Puerto Rico is only entitled to some of the benefits that states enjoy. Citizenship is one of them; bankruptcy protection isn't. And the differences don't end there: while the U.S. gradually bounced back from the 2008 economic crisis, Puerto Rico continued to flounder.
Part of the reason for Puerto Rico's sustained economic demise stems from its nearly decade-long recession. The island slid into a recession in 2006 after the U.S. government eliminated the Section 936 tax incentive, which gave American businesses based in Puerto Rico a federal tax exemption. The Clinton Administration decided to eliminate Section 936 in the '90s an effort to raise revenue to shrink the Federal deficit despite then-Governor Dr. Pedro J. Rossello and various business groups arguing that removing Section 936 would devastate the Puerto Rican economy.
Lo and behold, in 2006, at the completion of the 10-year plan to phase out Section 936, Puerto Rico's economy contracted. And in the years that followed, the Puerto Rican government borrowed lots of money to run the country.
Where Things Stand
Ten months after Padilla's announcement, and Puerto Rico's situation has only worsened. In July 2015, 34 hedge funds—clearly unbothered by the vulture fund nickname—suggested that the government close schools and fire teachers. The funds reasoned the government could then use funds that were earmarked for education to pay off its debts.
Even though the government didn't take the funds' advice, public programs have suffered amid the crisis. The government was unable to make a $250 million payment to its hospitals last year, further exasperating an already underfunded and overwhelmed healthcare system.
As a result, services and hours have been cut, and now coverage is on the chopping block. Ricardo Rivera-Cardona, the head of the Health Insurance Administration, told NPR last month that if Congress doesn't lift Puerto Rico's Medicaid reimbursement cap—which would give the island the same amount of funding as states—one million out of 1.6 million Medicaid patients will lose coverage.
Also in March, Puerto Rico went before the Supreme Court to argue for a local law that would allow public utilities to restructure their debt, though a ruling on that case is likely months away.
Congress could provide Puerto Rico with the relief it needs in managing its crushing debt. However, despite House Speaker Paul Ryan's insistence in December that lawmakers come up with a "reasonable solution" by March, Congress has failed to make meaningful progress on a bill. Although the way Ryan tells it in his response to Hamilton creator Lin-Manuel Miranda's critical rap on Last Night Tonight With John Oliver, Congress is making progress.
(Skip to 19:01 for Miranda's rap)
Ryan commented on the situation on Tuesday. Three days later, and there still isn't a bill.14 (o): [object Object] WSODIssue (s): |45294|72887506|228906|20623115 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): How Much Would You Spend On a Smart Home? Link (s): http://folionation.squarespace.com/news/2016/4/27/how-much-would-you-spend-on-a-smart-home.html Thumbnail (s): DocumentDate_raw (n): 1461778800000 DocumentDate (s): April 27, 2016 DocumentDate_smart (s): Apr 27, 2016 DocumentKey (s): 1107-290734296785735671940-13TLJUV0L9KCGRSQ0KCIRI6MRT ContentType (s): Article TrackingPixel (s): Teaser (s):
Talk of smart homes has floated around for years, but what will it take for smart home to become the norm?
The smart home is nothing new—just watch an episode of The Jetsons for a glimpse of home automation, or check out Ford's (F) 1967 short film 1999 AD for another take on the domicile of the future. People have long dreamed of controlling their home's operations with a simple flip of a switch, press of a button, vocal command or tap/swipe on a screen.
And we're getting closer to that, albeit slowly. Market research firm Gartner predicts that the typical family home may have 500 smart devices in 2022. One company that may pop up in more homes by that time is Nest Labs, one of the best-known companies in the Internet-connected home devices space. Nest makes smart thermostats, smoke and carbon monoxide detectors and security systems, and it was acquired by Google—now Alphabet (GOOG)—for a staggering $3.2 billion in January 2014.
Unfortunately for Nest, it has struggled to meet its parent company's $300 million annual sales target; Re/code reports that the company generated $340 million in revenue last year only after incorporating sales from Dropcam (which it acquired in 2014).
Nest's sales may not be growing fast enough to satisfy Alphabet management, but interest in smart homes is strong. In its 2015 State of the Smart Home report, which surveyed 1,600 adults in the U.S. and Canada, smart home solutions provider Icontrol found that 54% of U.S. respondents intended to purchase at least one smart home device in the coming year.
Millennials, in particular, are interested in smart home technology—and it's not because of laziness, stupidity, or general being-the-worst-ness. According to Better Homes and Gardens's 2015 Home Factor survey, 74% of Gen Y respondents believed smart home technology was "customizable to their needs," 70% thought it would increase energy efficiency and 67% expected it to save time. Part of that customization means plug-and-play solutions, such as Koninklijke Philips NV's (PHG) Hue wireless lighting, that renters can easily install, uninstall and move.
Additionally, 68% of millennials said smart home technology was a "good investment," up from 57% in 2014.
Smart home technology may be considered a good investment by most, but it's also considered an expensive investment by most, too. Per the Home Factor survey, just 51% of millennial respondents thought their budget could accommodate smart technology purchases. That's better than the feeling in the general survey pool: 7 in 10 respondents said the technology was too costly.
So, how much is too much when it comes to making a home smart? In the State of the Smart Home report, respondents 45-years-old and younger expected to spend $2,000 to $3,000 on smart home upgrades while respondents over age 45 capped spending at $500.
With that in mind, below is a list of three stocks that offer smart home products, as well as the retail price for these devices. If you, like four in 10 millennials, find smart homes appealing, do you plan to buy these products? Or would you rather invest in the companies behind these technologies? Or...
Click on the interactive chart to view data over time.
1. Amazon.com Inc. (AMZN, Earnings, Analysts, Financials): Operates as a global online retailer and offers cloud computing services through its Amazon Web Services platform Market cap at $291.49B, most recent closing price at $620.50.
Amazon Echo, a wireless speaker and voice command device, retails for $179.99. There's also a payment plan of five monthly payments of $36.00.
2. Alphabet Inc. (GOOG, Earnings, Analysts, Financials): Provides online advertising services, assorted Internet products and hardware through its Google segment and runs speculative businesses through its Other Bets segment. Market cap at $495.14B, most recent closing price at $718.77.
Subsidiary Nest Labs develops and markets the Nest Learning Thermostat, which retails for $249, Nest Protect smoke and carbon monoxide dector, which retails for $99, and Nest Cam security camera, which retails for $199.
3. Koninklijke Philips N.V. (PHG, Earnings, Analysts, Financials): Engages in the healthcare, consumer lifestyle, and lighting product businesses worldwide. Market cap at $24.79B, most recent closing price at $28.28.
The Hue wireless lighting starter kit retails for $79.95.
4. Spectrum Brands Holdings Inc. (SPB, Earnings, Analysts, Financials): Operates as a consumer products company worldwide and, through its Hardware and Home Improvement group, owns lock manufacturer Kwikset. Market cap at $6.61B, most recent closing price at $111.89.
Subsidiary Kwikset manufactures and sells the Kevo lock, which opens with a key or smartphone and retails for $199, and offers other connected lock solutions.
(Quarterly sales data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)
Analyze These Ideas: Getting Started
Dig Deeper: Access Company Snapshots, Charts, Filings
Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.15 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): All It Takes Is One Bad Apple (Earnings Report) Link (s): http://folionation.squarespace.com/news/2016/4/27/all-it-takes-is-one-bad-apple-earnings-report.html Thumbnail (s): DocumentDate_raw (n): 1461778740000 DocumentDate (s): April 27, 2016 DocumentDate_smart (s): Apr 27, 2016 DocumentKey (s): 1107-290734296785735671927-1K9MVQR24CDFC3NEFO4NCNG9RJ ContentType (s): Article TrackingPixel (s): Teaser (s):
Apple's first-quarter earnings fell short of expectations because people just aren't buying iPhones like they used to.
Unlucky number 13 reared its ugly head when Apple (AAPL) released its first-quarter earnings after market close on Monday. The consumer tech giant reported its first year-over-year decline in revenue since 2003 due to a slowdown in iPhone sales. Following the earnings release, the stock fell roughly 6% and lost over $40 billion in value in after hours trading, making it the worst performer in the Dow Jones Industrial Average since being added on March 18, 2015—a little over 13 months ago.
Apple shares recovered some of their losses in Wednesday morning trading. The stock is down 6.20% as of 1:35PM EST.*/
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